Merchandise volume and coal volume was up by 1% and 2%, respectively. However, intermodal volume decreased 10% primarily due to rationalization of low-density lanes.
CSX expects full-year 2019 revenue to decline 1-2%. This outlook reflects the company’s present activity levels, with upside if conditions improve in the second half. CSX added that it is taking a cautious forecasting approach given the economic uncertainty.
Expenses decreased 3% year-over-year to $1.76 billion, driven by efficiency savings and lower volume. Labor and Fringe expense decreased $21 million, while Materials, Supplies and Other expense dropped $14 million. Fuel expense declined $36 million primarily due to a 6% price decrease, record fuel efficiency and lower volume.
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During the second quarter of 2019, CSX repurchased 11 million shares for $860 million.
CSX’s peer Canadian Pacific Railway (NYSE: CP) reported its Q2 results earlier today and its earnings and revenue topped analysts’ views, making the stock to reach its new 52-week high today. CP stock closed up 3.92% at $246.27 today.
CSX shares have gained 28% in the past three months and 25% in the past 12 months.
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